New unemployment numbers issued by the Federal government on Wednesday show a slowing in new jobless claim applications. Initial claims for the week ending Nov. 21st were a seasonally adjusted 466,000, down from a revised 501,000 in the prior week. This is the lowest level in more than a year.
However, while the Labor Department numbers showed some degree of hope, analysts were quick with a caveat. Analysts say claims must fall below 400,000 to signal payrolls growth. To this point, many analysts have called the economic recovery a "jobless recovery."
It was the fourth consecutive week of new jobless claim declines. It continues the steady trend downward from a recent peak of 674,000 in late March. Analysts polled by Reuters had expected a drop to 500,000 claims from the previously reported 505,000, which would be a much moer modest slip.
As is usual, the Labor Department also released the four-week moving average for new unemployment claims. The moving average takes a four week snapshot that "moves" as time progresses, and averages those weeks. It considered a better gauge of trends since it even out spikes in either direction. The four-week moving average fell 16,500 to 496,500 in the latest week, the lowest number since November of last year and the 12th consecutive weekly drop.
The Labor Department also released continuing jobless numbers. The number of workers continuing to collect jobless benefits after an initial week of aid plunged by a greater-than-expected 190,000 to 5.42 million in the week ended Nov. 14. This number trails the new claims statistics by a week.
This number is the lowest level since February. Analysts polled by Reuters had expected the continuing jobless number to drop to 5.59 million.
The Labor Department released these numbers a day early due to the Thanksgiving holiday. Generally these numbers are released on Thursdays.
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